Schemes: PAYE for tax code M (annual thresholds applied per period), ACC earners' levy (1.67%, annual maximum), KiwiSaver (employee elects 3/4/6/8/10% — set rate on the registration; employer 3%), student loan (12% over the pay-period threshold, for M SL codes).
What each employee provides
- Tax code (M seeded; others below), KiwiSaver membership + elected rate, student-loan flag.
NZ tax codes explained
The tax code on the employee's IR330 tells you how much PAYE to deduct. Codes ending in SL also deduct a student-loan repayment.
| Code | Who it is for | What is deducted | In BareLedger |
|---|---|---|---|
| M | Main or highest-paying job | PAYE at the progressive rates (10.5% to 39%) | Built in |
| M SL | Main job, with a student loan | PAYE as M, plus 12% of pay above the repayment threshold | Built in |
| ME, ME SL | Main job, eligible for the independent earner tax credit | PAYE as M, reduced by the credit | Add a fixed amount on the registration |
| SB | Secondary job, total yearly income up to $15,600 | Flat 10.5% | Add as a flat-rate tenant scheme |
| S | Secondary job, $15,601 to $53,500 | Flat 17.5% | Add as a flat-rate tenant scheme |
| SH | Secondary job, $53,501 to $78,100 | Flat 30% | Add as a flat-rate tenant scheme |
| ST | Secondary job, $78,101 to $180,000 | Flat 33% | Add as a flat-rate tenant scheme |
| SA | Secondary job, over $180,000 | Flat 39% | Add as a flat-rate tenant scheme |
| SB SL, S SL, SH SL, ST SL, SA SL | Secondary job, with a student loan | The flat rate above, plus 12% of all secondary pay (no threshold) | Add both rates as tenant schemes |
| STC | Special tax code issued by Inland Revenue | The rate on the employee's IRD certificate | Add the certificate rate as a tenant scheme |
Secondary-code bands apply from 31 July 2024. The rates above exclude the ACC earners' levy, which BareLedger deducts as a separate line; Inland Revenue's employer guide quotes them with the levy included (for example 12.25% for SB). Check the employee's IR330 and Inland Revenue's current rates before a pay run.
Worked example — $5,000 monthly
PAYE $851.71 (annual $60k through the 10.5/17.5/30% thresholds) · ACC $83.50 · KiwiSaver at 8%: $400 employee / $150 employer · student loan $358.72 (12% over $2,010.67).
Limitations
Only the M code is seeded — secondary codes (S/SH/ST) are flat rates you can add as tenant schemes, or use a fixed amount per registration. ESCT on the employer KiwiSaver contribution and payday filing are later additions.